Seoul - Shares closed more than 3 per cent lower Wednesday on the Seoul stock exchange on rumors that South Korea may apply for bail-out funds by the International Monetary Fund (IMF). The South Korean authorities denied the market rumors.

The benchmark Kospi index plunged 30.19 points, or 3.02 per cent, to close at 968.97, giving up earlier gains.

Declining issues outnumbered advancers 526 to 320.

The main index of the technology-heavy Kosdaq market declined 6.84 points to 265.59.

On currency markets, the US dollar was quoted at 1,427.0 Korean won, up 40.80 won from Tuesday's close of 1,467.80 won. (dpa)